P.M. BRIEFING : Ramada to Sell Its Hotel Chain
Ramada Inc., best-known for its moderately priced hotel rooms, said today it would sell its hotel chain to New World Development Co. Ltd. of Hong Kong for $540 million, freeing Ramada to concentrate on its casinos.
Ramada began a restructuring in October and the sale of the chain of more than 825 hotels is a major step in the overhaul.
New World, a large real estate company, also said that Fairfield, N.J.-based Prime Motor Inns Inc. would participate in the transaction and operate Ramada’s U.S. franchise system consisting of more than 600 hotels under the Ramada Inn, Ramada Hotel and Roadway banners.
The Ramada name, adopted in 1959, will stay with the hotels. The new gaming company will take on a different name, to be introduced later.